Huawei’s Mate 90 bets on 3D chip design to get around US curbs

Huawei Technologies showcased its Mate 90 smartphone series on Thursday, relying on its proprietary operating system and redesigned chip design to counter US restrictions on advanced semiconductors. During a press briefing on Tuesday, Huawei's consumer business chief Richard Yu acknowledged ongoing supply constraints for advanced chips in China, noting that Ascend AI chips also face similar limitations.

The chip shortage persists despite rising smartphone prices, which have reduced handset shipment volumes. The Mate 90 series, succeeding the Mate 80, is powered by Huawei's Kirin 9050 Pro, a system-on-chip utilizing a 3D "LogicFolding" technique that enhances processing speed by reorganizing internal wiring in three dimensions. However, this method demands more wafers for production.

Huawei's chairman Eric Xu previously mentioned that Ascend 950 AI chip supply couldn't keep up with domestic demand due to capacity constraints, with China's advanced chipmaking still relying on deep ultraviolet (DUV) lithography, while extreme ultraviolet (EUV) technology development lags. Huawei plans to incorporate more LogicFolding chips in upcoming smartphones.

The company's HarmonyOS 7, operating on their phones, supports over 450,000 apps and services. The Mate 90 Pro Max, featuring 16 GB of memory and 512 GB of storage, will retail for 9,999 yuan ($1,491), 2,000 yuan more than its predecessor's launch price. The standard and Pro models begin at 5,999 yuan and 6,999 yuan, respectively.

Higher handset costs are a challenge for Chinese manufacturers, who are raising prices and focusing on premium models to offset increased memory and component expenses. Despite a 7% decline in domestic smartphone shipments year-on-year, Huawei's shipments in China rose 13%, and the average selling price of Huawei phones dropped 14.7% to $628 in the second quarter, according to IDC.

Apple's entry into the foldable phone market with the iPhone Duo didn't deter Huawei, who welcomed the competition and reported a 76% week-over-week sales surge for their Pura X Max foldable phone following the launch. If Apple ships 6 million iPhone Duos in 2026, China would account for nearly a quarter of the total.